Explain the term physical capital. Classify physical capital’s types with examples.
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✌️Hey mate!✌️
Physical capital is the variety of inputs required at every stage during production.
Physical capital is of two types:-
(1) FIXED CAPITAL:- Tools, machines, buildings can be used in production over many years, and are called fixed capital.
(2) WORKING CAPITAL:- Raw materials and money in hand are called working capital. example- yarn, clay, etc.
✨ Hope it is helpful!✨
Physical capital is the variety of inputs required at every stage during production.
Physical capital is of two types:-
(1) FIXED CAPITAL:- Tools, machines, buildings can be used in production over many years, and are called fixed capital.
(2) WORKING CAPITAL:- Raw materials and money in hand are called working capital. example- yarn, clay, etc.
✨ Hope it is helpful!✨
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